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ARCHIVED - Public Notice CRTC 2001-86

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Archived

Public Notice
CRTC 2001-86

Ottawa, 26 July 2001

The Commission has received the following applications:

1.

Across Canada
Applications No. 2001-0747-6, 2001-0549-6

Applicantions by Alliance Atlantis Communications Inc. (Alliance Atlantis) seeking authority to acquire control of The Independent Film Channel Canada Incorporated (licensee of the category 1 digital specialty service "The Independent Film Channel Canada") and of 3779718 Canada Limited (licensee of 20 category 2 digital specialty services)by acquiring all of the issued and outstanding shares (10common voting shares) of their parent company Salter Street Broadcasting Limited.

These shares are currently held in trust by Mr. Daniel M.Campbell, Q.C.

The change in control results from the take-over of Salter Street Films Limited by Alliance Altantis on April 19, 2001 by way of a merger between Salter Street Films Limited and a wholly owned subsidiary of Alliance Atlantis.

Alliance Atlantis indicated that the value of the transaction is estimated at $6.4 million. Alliance Atlantis proposes $1.250 million in tangible benefits to be distributed as follow : Filmmakers Training Program in Atlantic Canada ($0.7 million), Independent Film Channel Canada (IFCC) Canadian Programming Fund ($0.5 million) and Atlantic Film Festival ($0.05 million).

The Commission hereby seeks public comments on the merit of the application and on the appropriateness of the benefits package proposed by the applicant. Public comments should address, among others, the following points:

· The value of the transaction, including the proposed tangible benefits package.

· The impact of the transaction on diversity of ownership in the Canadian specialty services industry.

· The possible consequences of the transaction on the Commission's process in licensing specialty services.

· The impact of Alliance Atlantis's vertical integration in terms of programming production and programming services.

Applications by Corus Entertainment Inc. (Corus)seeking authority to acquire control of

a) Telelatino Network Inc. (TLN) by acquiring an additional 30.5% of the voting shares of TLNlicensee of the national specialty programming undertaking known as Telelatino,comprised of ethnic programs directed to Italian and Hispanic/Spanish audiences (application 2001-0535-5); and,

b) Lifestyle Television (1994) Limited (Lifestyle) by acquiring all of the issued and outstanding voting shares of Lifestylelicensee of Women Television Network (WTN), an English-language specialty service (application 2001-0640-3).

a) Telelatino application

The applicant requests the Commission's approval for the transfer of a 30.5% voting interest in Telelatino from four of TLN's existing shareholders to Corus or a wholly-owned subsidiary of Corus. Corus currently has a 20% voting interest in Telelatino and would, following the proposed transaction, increase its participation to 50.5%.

The total purchase price of the voting interests to be acquired by Corus amounts to approximately $10.5 million. Corus is proposing a tangible benefits package of $1.1 million to be spent over a 7-year period. The proposed benefits will be distributed in "licence fee top-up funding" for the production of programs directed to Canada's Italian and Hispanic communities.

b) WTN application

Lifestyle was originally owned by Moffat Communications Inc. (Moffat) and then transferred to a voting trust arrangements pursuant to a Commission's decision where it has approved Shaw Communications Inc. (Shaw)'s acquisition of Moffat.

The value of the transaction is $205 million. Corus is proposing a tangible benefits package of $20.5 million to be spent over a 5-year period. The proposed benefits will be distributed as follow:

· Corus Women Programming Fund ($15 million);

· Corus Chair in Communications Sector Strategy at Rotman School of Management, University of Toronto ($2 million);

· Corus Chair in Women Management at the Richard Ivey School of Business, University of Western Ontario ($2 million);

· Canadian Women in Communications ($0.5 million);

· Corus Young Filmmakers Program ($0.5 million); and,

· The Corus Export Initiative ($0.5 million).

The Commission hereby seeks public comments on the merit of each application separately and, on a combined basis.

Public comments should address, among others, the following issues:

· The value of the transaction including the appropriateness of the proposed tangible benefits package associated with the Telelatino and the WTN applications;

· The increased concentration of ownership of analog discretionary programming services in the hands of Corus;

· The potential impact on diversity of voices; and,

· The vertical integration resulting from Corus interests (directly and/or indirectly) in the production and distribution business (i.e. providing access to a plurality of independent programming voices).

Application by CHUM LIMITED seeking authority to acquire control of CKVU Sub Inc., licensee of CKVU-TV Vancouver, by acquiring all of its issued and outstanding shares.

Mr. L.R. Sherman currently holds the shares in trust. The television station is being managed by its board of directors and management.

Last year, the Commission granted CHUM a license for a new television station in Victoria with rebroadcasting facilities in Vancouver (Decision CRTC 2000-219, 6 July 2000). The purchase of CKVU-TV by CHUM would create a dual ownership situation in the Vancouver market. This resulting dual ownership situation would be the second in that market where CanWest Global currently operates CHAN-TV and CHEK-TV.

CHUM proposes a benefit package of $15,35M based on a value of the transaction of $125M before adjustment for working capital and assumed liabilities. CHUM would spread the expense over a seven-year period.

CHUM would spend $8.03M on B.C. independent production, $5.95M on local news and information programming, and $1.37M on local culture, social policy, and talent development.

The expenses for local news and information programming include expenditures of $2.2M for local news and $3.6M for local non-news programming. Since CHUM's proposed format is based on local programming, these expenses could be of a kind considered as part of its mandate.

The Commission hereby seeks public comments on the merit of the application and on the appropriateness of the benefits package proposed by the applicant.

The intervention must be received by the CRTC and by the applicant ON OR BEFORE the above-mentioned date. The Commission cannot be held responsible for postal delays.

Your intervention will be considered by the Commission, and will form part of the public record of the proceeding without further notification to you, provided the procedure set out below has been followed. You will be contacted only if your submission raises procedural questions.

Submit your written intervention to the Secretary General of the Commission in ONLY ONE of the following formats:

BY MAIL AT
CRTC, Ottawa, Ontario, K1A 0N2

OR

BY FAX TO THE
Secretary General - (819) 994-0218

OR

BY ELECTRONIC MAIL TO
procedure@crtc.gc.ca

A true copy MUST be sent to the applicant and proof that this has been done must accompany the intervention sent to the Commission.

Where the intervention is filed by electronic means, the line ***End of document*** should be entered following the last paragraph of the document, as an indication that the document has not been damaged during electronic transmission.

Please note, that only the documents (applications and interventions) electronically filed will be available on the Commission's web site. You will be able to access these documents by indicating the public notice or the notice of public hearing number.

Each paragraph of the document should be numbered.

Your intervention should clearly identify the application and indicate whether you support or oppose the application, or if you propose changes to it, include the facts and grounds for your proposal.

In the event that the application is brought to the oral phase of the hearing, and if you wish to appear, you must provide reasons why your written comments are not sufficient and why an appearance is necessary.

In exceptional circumstances, the Commission may allow an intervenor to present its intervention by teleconference. At the time of filing its intervention, the intervenor must clearly indicate why the Commission should grant such a request.

EXAMINATION OF DOCUMENTS DURING NORMAL OFFICE HOURS

Documents are available at the local address provided in this notice and at the Commission offices and documentation centres directly involved with these applications or, upon request, within 48 hours, at any other CRTC offices and documentation centres.